This setup adds an extra layer of anonymity and protection.

If a policy excludes wind coverage (more common in places like Florida where insurance is severely strained by weather and other market conditions) then all wind related events are excluded.In those cases, it's sometimes possible to purchase a wind policy (usually covers wind & hail) which would provide tornado protection.

Worried about asset protection.

I want to get control of the properties, remodel and furnish, while protecting this investment.  

Not exactly earth-shattering.The bigger question is, why are you setting up an LLC before you even have anything to protect?

We’re trying to secure coverage for our LLC to protect against situations like missed disclosures during a sale, professional negligence that may affect a future buyer, etc.

Moving your properties into one LLC will protect them, and I would put the LLC in a trust.

While this structure offers great asset protection benefits, it doesn’t necessarily save money on filing fees or administrative costs.

Homeowner should have an adequate policy and you can use additional damage protection from services like Safely and Waivo.Yes, security deposits are normal for MTRs and highly recommended. 

You’ll need a real estate attorney experienced in creative financing.Land Trusts for Extra Protection – Many investors in Illinois use a land trust to hold title when doing subject-to deals.